Extending and Expanding Tax Credit

Extending and Expanding Tax Credit - this was on the agenda yesterday. The Senate approved extension of the credit and agreed on a new credit of $6,500 for existing homebuyers. The latter will be offered to those who have lived in their residence for 5 consequtive years in the last 8 years. And the income level has been rised to 125k for a single owner and 250k for joint taxpayers. You should have ratified contracts before April 30 and close on the property before June 30, 2010.
Of course, this proposal is yet to be voted on in the full Senate and the House.
It would definitely give some boost to the real estate market. And most importantly these measures are not aimed at enriching the investors. They have brought new families into the market. I do not think it will revive the new home market. But it will definitely benefit those who can get a loan and just lack some money to close on it.

Home by the Clarendon Metro - October 19

For those people looking to rent a home by the Clarendon Metro there are 15 properties you can choose from. Most of them are condo units in high-rises. You can rent a 1 bedroom for $1,800/mo and a 2 bedroom with 1 or 2 full baths from $2,000 to $3,800 and 3 bedroom condo for $2,870/mo. There are also two townhouses for rent: 2 bedroom for $,1825/mo and 4 bedrooms and 3 1/2 baths $4,900/mo.

For potential purchasers, within a radius of 0.3 miles from the Clarendon metro, you can purchase 20 condo units: 1 and 2 bedroom units from $355,000 to $800,000. There are also 4 detached houses at walking distance to the metro: price range is between $850,000 and $1,200,000. These are either bank foreclosures or ordinary sales.

As of today there are no short sales within 0.3 miles from the metro.

How to Avoid Foreclosure?

Many homeowners in distress are not given a chance to avoid foreclosure. Most of the time banks immediately consider foreclosing on you as soon as they see you are late in your monthly payments. A new Housing Bill is intended to prohibit lenders from foreclosing without first discussing reasonable modification options with the borrowers. Preserving Homes and Communities Act is the name of this bill. Lenders will have to go to a negotiating table with the homeowners to discuss this opportunity - otherwise there will be legal actions and fines. It will be mandatory for lenders to offer some sort of a plan to help the homeowners keep their properties by lowering their monthly payments and extending the loan term, etc.

Hopefully, it will be passed despite the fierce opposition on the part of financial institutions.

So, if you or anyone you know is in distress, put together all the paperwork showing your hardships and start calling your bank with a request to modify your loan. Do not give up - it may take months before your bank starts listening to you.